Mirae NBFC arm floats new product offering loans against MF holdings

Customers can avail instant loans of up to Rs 3 crore by pledging their equity and debt MF holdings on a mobile app

Mirae Asset Financial Services, an NBFC of South Korea’s Mirae Asset Group, has introduced ‘loan against mutual funds (LAMF)’, its first offering in the domestic market.

Under this facility, customers can avail instant loans between Rs 50,000 and Rs 3 crore by pledging their equity and debt mutual fund holdings using a mobile application.

“Most investors redeem their investments done for long-term goals to meet short-term needs like managing liquidity in business, house renovation or medical emergencies which is fundamentally incorrect. We want to help customers by providing access to funds whenever they need them,” said Krishna Kanhaiya, Chief Executive Officer, Mirae Asset Financial Services (India), adding the company is entering a high-competitive NBFC space.